IBBI Directs Resolution Professionals To Provide Copy Of Report Prepared Under Section 99 Of IBC To Creditors & Debtor
Pallavi Mishra
27 Feb 2024 4:45 AM GMT
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 12.02.2024, directing that the Resolution Professional shall provide the report prepared under Section 99 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to both debtor and creditor. The Resolution Professional (RP) in an insolvency resolution process of a debtor under Chapter III of Part III...
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 12.02.2024, directing that the Resolution Professional shall provide the report prepared under Section 99 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to both debtor and creditor.
The Resolution Professional (RP) in an insolvency resolution process of a debtor under Chapter III of Part III of IBC examines the application filed under Section 94 or 95 of IBC. Thereafter, the Resolution Professional submits a report to the Adjudicating Authority (NCLT) under Section 99(1) of IBC, recommending for approval or rejection of the application. Section 99(10) mandates the Resolution Professional to share a copy of this report to the debtor or the creditor, as the case may be.
The IBBI noted that in certain cases, the Resolution Professionals have not shared a copy of the report with both debtor and creditor, leading to a lack of equal information access among them.
Therefore, the IBBI has advised that the Resolution Professionals shall provide a copy of the report to both debtor and creditor in all cases. This will ensure that the debtor and the creditor are well-informed about the evaluation and recommendations made by the RP, thereby promoting transparency and informed decision-making.
Ref. No. IBBI/II/66/2024
